Looming recession – Rudd Panics

05-February-2009

Kevin Rudd is planning to plunge Australia deep into debt with a knew jerk reaction that will have our children paying off billions of dollars in interest for years to come, Federal Liberal Member for Indi, Sophie Mirabella MP said today.

“The Rudd Labor Government will go down in history for destroying the Australian economy, despite being given it on a platter with a very healthy $21 billion surplus,” Mrs Mirabella said.

“History tells us that Labor Government and Budget deficits go hand in hand. Labor’s package is poorly targeted, ill-thought through and irresponsible in today’s economic climate.”

“It brings back the painful memories of the so-called Keating ‘recession we had to have” and the big government catastrophic Whitlam days.”

“The objective of any package must be to protect and create jobs, support small business and strengthen our economy and this package will not achieve this. We have said time and again that the most important issue this year is jobs and obviously Mr Rudd doesn’t get it. The Government refused to listen to any ideas – it’s either their way or the highway,” Mrs Mirabella said.

“Almost all economists agree that the recession has a long way to go. And yet the Rudd Labor Government is panicking, firing all its bullets at the first engagement. This is nothing but debt-fuelled spending and the Prime Minister’s own package predicts unemployment will top 7% in just over a year – another 300,000 Australians out of work.”

“The previous Labor Government left a legacy of $96 billion and It took the Australian people a decade to repay this debt. Now debt will even exceed the Keating years climbing to $118 billion,” Mrs Mirabella said.

“Now, another Labor Government is asking us, on behalf of those hard working Australians to agree to plunge headlong back into large deficits and significant debt.

Mr Rudd’s plan asks the Parliament’s permission to take the nation $200 billion into deficit – $9,500 debt for every Australian.”

“The opposition has proposed that the permanent tax cuts currently scheduled for 1 July 2009 and 1 July 2010 be brought forward, and backdated to 1 January this year. By the middle of 2010 this would leave a two-income household earning $80,000 approximately $1700 better off.

“The Coalition will approach the economic times ahead with prudent economic management and our approach will recognise the reality of a Budget deficit but aim to minimise public debt,” Mrs Mirabella concluded.